HDDVD was dead the second Blue ray was put into playstation 3. Once that happened you had a whole section of the market basically getting there blueray players for free (because they bought it as a game console not a DVD player)
So how come with all those Blu Ray players in PS3s out there, sales of disks are quite weak, at between 10 to 12% of market share?
Also, how much does a PS3 cost? More than an X-Box with a DVD player, so that Blu Ray device perhaps wasn't so 'free'.
What is the best selling console btw? Oh, it's the Wii, sans Blu Ray.
So in the market, consoles with Blu Ray aren't at more than 50%, so all of those kids, are using them to watch what? Oh, regular DVDs.
Regular DVD is still king, and there's still room for a new prince.